Inflationista Report: Import Prices Surge 1.0%, Export Prices 0.8%

Import and export prices surged again and it’s not all energy related. The net GDP effect is negative.

The BLS report on Import and Export Prices shows another 1% rise in import prices in January, having also risen 1% in November.

All Imports: The price index for U.S. imports rose 1.0 percent in January, after increases of 0.2 percent in December and 1.0 percent in November. The 1.0-percent advances were the largest 1-month rises since the index increased 1.2 percent in May 2016. Import prices advanced 3.6 percent between January 2017 and January 2018.

Fuel Imports: Fuel prices increased 4.7 percent in January following a 2.9-percent advance in December and a 9.8-percent rise in November. Higher prices for petroleum and natural gas contributed to the increases in all 3 months. Prices for petroleum advanced 4.3 percent in January, after rising 2.3 percent the previous month and 9.5 percent in November. The price index for natural gas increased 20.7 percent in January following advances of 20.0 percent in December and 25.7 percent in November. Prices for fuel imports rose 19.7 percent over the past 12 months. Petroleum prices increased 20.9 percent for the year ended in January and prices for natural gas advanced 16.2 percent over the same period.

All Imports Excluding Fuel: Prices for nonfuel imports advanced 0.4 percent in January, after edging down 0.1 percent the previous month. The January increase was the largest monthly advance since the index rose 0.4 percent in March 2012. The last time the index increased more than 0.4 percent was a 0.8-percent rise in April 2011. Prices for nonfuel industrial supplies and materials; automotive vehicles; foods, feeds, and beverages; and capital goods all contributed to the January advance. The price index for nonfuel imports increased 1.9 percent over the past 12 months, the largest over-the-year rise since the index advanced 2.0 percent in March 2012. The January 12-month advance was primarily driven by rising prices for nonfuel industrial supplies and materials.